You already have your answer; you have your start X/Y and finish X/Y, so you have a range and the distance between the points
Calculate the amount of points you will create per axis
xRange = maxX - minX
yRange= maxY - minY
xloop = int(xRange /0.125)+1
yloop = int(yRange /0.125)+1
Create your point variables
pointGeometryList = []
point = arcpy.Point()
Set the start point
point.Y = minY
point.X = minX
for y in range(0,yLoop):
....for x in range(0,xLoop):
add a point to your point array
........pointGeometry = arcpy.PointGeometry(point)
........pointGeometryList.append(pointGeometry)
move along the x axis and create a point per 0.125 degrees
........point.X = point.X + 0.125
once the xloop has finished, reset X
....point.X = minX
and move the yaxis up 0.125
....point.Y = point.Y + 0.125
create the point feature
arcpy.CopyFeatures_management(pointGeometryList, "c:/geometry/a.gdb/points")
Please note, this si off the top of my head and completely untested, so I am not responsible for it if you use it. However, that should, I think, start you off.
You will have created points outside of the polygon, as I have ensured the MBR is properly represented; you may want to erase features outside of the polygon afterwards.